Germany’s Bitcoin holdings briefly dropped below 5,000 BTC after sending a large amount to Coinbase, Bitstamp, and Kraken, but then moved some back.
The German government’s Bitcoin wallet now holds 9,094 BTC—only 18% of what it initially had—after recent transfers to and from crypto exchanges on July 11.
The wallet, holding Bitcoin seized from a film pirating website in January, has transferred billions in Bitcoin since June 19, with increased activity starting in July.
On July 11, the wallet briefly dipped below 5,000 BTC after sending 10,620 BTC—worth $615 million—to Coinbase, Bitstamp, Kraken, Flow Traders, and two anonymous addresses, according to blockchain intelligence firm Arkham.
Shortly after, some of those funds were transferred back to the German government wallet, bringing Germany’s Bitcoin holdings back above 9,000 BTC.
The German government now holds only 18% of the 49,857 Bitcoin it seized from the film piracy website Movie2k in January, worth $520 million.
Arkham suggests that the two anonymous addresses—ending in “139Po” and “bc1qu”—are likely owned by institutional deposit or over-the-counter trading service providers, though this hasn’t been confirmed.
The mass sell-off hasn’t pleased German lawmaker and Bitcoin activist Joana Cotar, who argued earlier this month that Bitcoin could have been used as a “strategic reserve currency” to protect against risks in the traditional financial system.
One Ordinals user expressed their frustration by sending Germany’s wallet address an inscription in German that translates to “Taxes are robbery.”
The sell-off, along with concerns that Mt. Gox has started distributing more than $8 billion in Bitcoin to its creditors, has significantly contributed to a Bitcoin price slump in recent weeks.
These bearish events have pushed the Crypto Fear & Greed Index—an indicator of market sentiment—into the “Extreme Fear” zone for the first time since January of last year.
Bitcoin is currently trading at $57,317, down 1.10% in the last 24 hours and 14.86% over the past month.
